Cousins REIT Launches Offering to Repay Revolving Credit Facility
Cousins Properties Inc. (CUZ) is selling 32m shares of common stock in a public offering to raise as much as $248m. The real estate investment trust (REIT) will use the proceeds -- up to $248m -- to repay a portion of the outstanding balance of the company's unsecured revolving credit facility. Remaining proceeds will be used to repay existing debt under the facility and for general corporate purposes. The underwriters have a 30-day option to purchase up to 4.8m additional shares to cover any over-allotments. Bank of America Merrill Lynch, Morgan Stanley and JP Morgan act as joint book-running managers for the offering. It's another move to minimize revolving credit facility -- seen in recent months as home builders exit facilities and rely on cash for operations -- and the latest REIT to launch a capital-raising effort. REIT activity has picked up lately as investors look to take advantage of the glut of distressed assets hitting the market. Mortgage and life insurer Genworth Financial (GNW) is also looking to raise new capital -- about $500m -- for general corporate expenses. Write to Diana Golobay.